Advice please!

mystery07

Hi guys

My OH was made bankrupt in October, at the time he was un-employed. His debts mounted to around 70K. At the time the OR fixed a date to discharge him in February, but due to un-employment hasnt made any payments to creditors.

Off the record the OR suggested to him, he would be best to remain un-employed until the discharge. If he does this, does this mean he will never have to pay back anything???? Also, he is considering going back to work, shortly, if he was to get a commission only job, how would this affect the BR???

He's just considering his options right now, but wants to consider what would be the best route.

Any help appreciated.

ClaireLR

If he remains unemployed until his discharge then no, he won't have to pay anything back. If he gets a job where he is earning more than his outgoings are, by £100 then he will have to pay a percentage back. This will be for 3 years.

BUT since his work would be commission based I'm not sure how that would affect any IPA.

Can anyone else offer any advice??

mystery07

ClaireLR wrote: »

If he remains unemployed until his discharge then no, he won't have to pay anything back. If he gets a job where he is earning more than his outgoings are, by £100 then he will have to pay a percentage back. This will be for 3 years.

BUT since his work would be commission based I'm not sure how that would affect any IPA.

Can anyone else offer any advice??

Thanks for this Claire. Are you sure that it would be the 3 years! I was under the impression that it would likely be 12 months???

ClaireLR

I'm pretty sure, an IPA is usually for a fixed term of 3 years.

Anyone else?

debt_doctor

Hi, Claire is quite right. If the BR has more than £ 100 per month excess income ( actual income, not forecast ) then an IPA would be in place for 3 years.

DD

mystery07

debt_doctor wrote: »

Hi, Claire is quite right. If the BR has more than £ 100 per month excess income ( actual income, not forecast ) then an IPA would be in place for 3 years.

DD

This is a bit contradictory of previous experience. Would the IPA be for 3 years, or upto 3 years ie between 1-3 years? Im confused, I realy didnt think it would be for as long as this.

thanks guys

tigerfeet2006

You are discharged from BR after 12 months. You would be given an IPA for 36 month (3 years). If you get a BRO/U (Bankruptcy restriction order/undertaking, you get this if you have been reckless ie: gambling ALL your money away) it can last from 3 to 15 years.

G-G_4

Am I right in saying that once he is disharged they cannot impose a new IPA? It is only whilst bankrupt that you can have a payment order on your income set up? (please correct me if i'm wrong there)..

If so, then once your husband is disharged in February, he can then get a job afterwards and no payment order can be made..

rog2

G-G wrote: »

Am I right in saying that once he is disharged they cannot impose a new IPA? It is only whilst bankrupt that you can have a payment order on your income set up? (please correct me if i'm wrong there)..

That is quite correct G-G. Unless an IPA/IPO is already in force at the time of discharge, whether automatic or early, then no IPA/IPO can be enforced.
However, if an IPA/IPO is already in force at the time of discharge, then the discharged bankrupt is still liable to report any changes in circumstances to the OR, until the end of the 3 year IPA/IPO period. Some OR's do not insist on this, though.

mystery07

tigerfeet2006 wrote: »

You are discharged from BR after 12 months. You would be given an IPA for 36 month (3 years). If you get a BRO/U (Bankruptcy restriction order/undertaking, you get this if you have been reckless ie: gambling ALL your money away) it can last from 3 to 15 years.

Ah, that seems to make more sense. I think Ive got confused :rolleyes: . It seems as though it might be more beneficial for him to stay unemployed until after february then.

Oh well not too long. But I have read online that after Feb, it would probably take another ten weeks for him to get an early discharge, due to the OR having to write to creditors etc. He just seems to be in limbo for the next few months :rolleyes:

Thank you for all your replies, it all makes a bit more sense now.

Broken_hearted

It's only beneficial if it helps him emotionaly as well as financialy.Some people struggle with boredom and depression if they are off work for long periods.